Gold prices today fall for first time after 4 days, silver rates tumble1 min read . Updated: 11 Feb 2021, 09:42 AM IST
- Weaker than expected US inflation data dented gold's appeal
- Gold is now down about ₹8,000 per 10 gram from August highs
Gold prices in India fell today in tandem with a fall in global rates while silver also skidded. On MCX, gold futures today fell 0.32% to ₹47,857 per 10 gram after a four-day rising streak while silver futures declined 1% to ₹68,275 per kg. In global markets, gold prices eased 0.2% to $1,838.41 an ounce as weaker than expected US inflation data dented bullion's appeal. But a flat US dollar and lower Treasury yields kept losses in check.
If the resistance of $1870 remain capped, there are chances of corrective selloffs for the day, Geojit said in a note. However, a direct drop below $1790 is needed to trigger major liquidation pressure in the counter, it added.
On MCX, gold faces resistance at ₹48,060 while has support at ₹46,220, the brokerage said.
US consumer prices rose moderately in January, tempering expectations for a sustained acceleration in inflation this year. Gold is considered a hedge against inflation. On Wednesday, the 10-year Treasury yield fell back to 1.12%.
Among other precious metals, spot silver shed 0.4% to $26.89 and palladium eased 0.2% to $2,351.24.
In a speech on Wednesday, Federal Reserve Chair Jerome Powell said the US job market remains a long way from a full recovery and it will require more than supportive monetary policy to achieve and sustain maximum employment.
ETF interest continued to remain weak. Holdings of the world's largest gold-backed exchange-traded fund SPDR Gold Trust fell 0.15% to 1,146.60 tonnes on Wednesday.
Hopes of huge US aid package continue to support gold and silver at lower levels, Kotak Securities said in a note.
Back in India, gold imports in January surged 72% from a year earlier, Reuters reported, citing sources as a correction in prices from a record high drew retail buyers and jewellers.
Gold prices in India are down about ₹8,000 from their August highs of ₹56,200 per 10 gram.
In India, investors put in ₹625 crore in gold exchange traded funds (ETFs) in January, 45% higher than the preceding month. The inflow pushed the asset base of gold funds by 22% to ₹14,481 crore at the end of January from ₹14,174 crore at the end of December, data available with Association of Mutual Funds in India showed. (With Agency Inputs)
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